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Summary of Significant Accounting Policies (Tables)

6 Months Ended

Aug. 31, 2019

Calculation of Basic and Diluted Net Income (loss) Per Share from Continuing Operations

The following table sets forth the calculation of basic and diluted net income per share:

	For the Three Months Ended August 31,
	2018								2019
	Net Loss			Shares		Net Loss Per Share			Net Income		Shares		Net Income Per Share
	(amounts in 000’s, except per share data)
Basic net income (loss) per common share:
Net income (loss) available to common shareholders	$	(373	)		12,522	$	(0.03	)	$	7,013		12,830	$	0.55
Impact of equity awards		—			—					—		—
Diluted net income (loss) per common share:
Net income (loss) available to common shareholders	$	(373	)		12,522	$	(0.03	)	$	7,013		12,830	$	0.55

	For the Six Months Ended August 31,
	2018						2019
	Net Income		Shares		Net Income Per Share		Net Income		Shares		Net Income Per Share
	(amounts in 000’s, except per share data)
Basic net income per common share:
Net income available to common shareholders	$	23,112		12,521	$	1.85	$	8,683		12,802	$	0.68
Impact of equity awards		—		974		—		—		—		—
Diluted net income per common share:
Net income available to common shareholders	$	23,112		13,495	$	1.71	$	8,683		12,802	$	0.68

Shares Excluded from Calculation as Effect of Conversion into Shares of Common Stock would be Antidilutive

Shares excluded from the calculation as the effect of their conversion into shares of our common stock would be antidilutive were as follows:

	For the Three Months Ended August 31,				For the Six Months Ended August 31,
	2018		2019		2018		2019
	(shares in 000’s )
Equity awards		1,929		2,075		876		2,235
Antidilutive common share equivalents		1,929		2,075		876		2,235

Schedule of Operating Results From Local Programming and Marketing Agreements

The following table summarizes certain operating results of 98.7FM for all periods presented. Net revenues for 98.7FM are solely related to LMA fees. 98.7FM is a part of our radio segment.

	For the Three Months Ended August 31,				For the Six Months Ended August 31,
	2018		2019		2018		2019
Net revenues	$	2,583	$	2,583	$	5,166	$	5,166
Station operating expenses, excluding depreciation and amortization expense		299		336		596		686
Interest expense		592		522		1,201		1,062

Schedule of Assets and Liabilities of Local Programming and Marketing Agreements

Assets and liabilities of 98.7FM as of February 28, 2019 and August 31, 2019 were as follows:

	As of February 28, 2019		As of August 31, 2019
Current assets:
Restricted cash	$	1,504	$	1,278
Prepaid expenses		394		372
Other current assets		340		526
Total current assets		2,238		2,176
Noncurrent assets:
Property and equipment, net		188		248
Indefinite lived intangibles		46,390		46,390
Operating lease right-of-use assets		—		7,541
Other assets		6,255		5,930
Total noncurrent assets		52,833		60,109
Total assets	$	55,071	$	62,285
Current liabilities:
Accounts payable and accrued expenses	$	15	$	15
Current maturities of long-term debt		7,150		7,448
Deferred revenue		864		894
Operating lease liabilities		—		356
Other current liabilities		162		150
Total current liabilities		8,191		8,863
Noncurrent liabilities:
Long-term debt, net of current portion and unamortized debt discount		38,747		35,076
Operating lease liabilities, net of current		—		8,221
Total noncurrent liabilities		38,747		43,297
Total liabilities	$	46,938	$	52,160

Summary of Restricted Cash

The following table provides a reconciliation of cash, cash equivalents, and restricted cash reported within the condensed consolidated balance sheets to the same amounts shown in the condensed consolidated statements of cash flows.

	As of February 28, 2019		As of August 31, 2019
Cash and cash equivalents, excluding amounts classified as held for sale	$	4,343	$	1,574
Restricted cash:
98.7FM LMA restricted cash		1,504		1,278
Cash used to secure the Company's purchasing card and travel and expense program		1,000		225
Total cash, cash equivalents and restricted cash	$	6,847	$	3,077

Summary of Noncontrolling Interest Activity

Below is a summary of the noncontrolling interest activity for the six months ended August 31, 2018 and 2019:

	Austin radio partnership			Digonex			Total noncontrolling interests
Balance, February 28, 2018	$	47,424		$	(16,744	)	$	30,680
Net income (loss)		2,743			(1,184	)		1,559
Distributions to noncontrolling interests		(2,724	)		—			(2,724	)
Balance, August 31, 2018	$	47,443		$	(17,928	)	$	29,515
Balance, February 28, 2019	$	47,146		$	(18,993	)	$	28,153
Net income (loss)		2,679			(1,001	)		1,678
Distributions to noncontrolling interests		(1,945	)		—			(1,945	)
Balance, August 31, 2019	$	47,880		$	(19,994	)	$	27,886

Results of Operations of Disposal Groups

Summary of Discontinued Operations Activity:

	For the Three Months Ended August 31,					For the Six Months Ended August 31,
	2018		2019			2018			2019
Income from discontinued operations:
Austin Radio Partnership	$	2,592	$	2,618		$	5,174		$	5,084
WQHT-FM and WBLS-FM		2,616		4,580			5,846			7,402
Total income before income taxes from discontinued operations		5,208		7,198			11,020			12,486
Less: provision (benefit) for income taxes		1,496		(6,753	)		(1,014	)		(5,806	)
Income from discontinued operations, net of tax	$	3,712	$	13,951		$	12,034		$	18,292

Austin Radio Partnership

Results of Operations of Disposal Groups

. The following table summarizes certain operating results of the Austin Partnership for all periods presented. A portion of Emmis’ mortgage debt is required to be repaid with proceeds of this transaction. In accordance with ASC 205-20-45-6, Emmis has allocated interest on the debt required to be repaid as a result of this disposal transaction to the results of the Austin Radio Partnership.

	For the Three Months Ended August 31,				For the Six Months Ended August 31,
	2018		2019		2018		2019
Net revenues	$	8,456	$	8,592	$	16,465	$	16,879
Station operating expenses, excluding depreciation and amortization		5,593		5,889		10,742		11,416
Depreciation and amortization		130		—		271		120
Interest expense		141		85		278		259
Income before taxes	$	2,592	$	2,618	$	5,174	$	5,084

Schedule of Major Classes of Assets, Liabilities

Major classes of assets and liabilities of the Austin Partnership that are classified as held for sale in the accompanying condensed consolidated balance sheets are as follows:

	As of February 28, 2019		As of August 31, 2019
Current assets:
Cash and cash equivalents	$	1,095	$	1,712
Accounts receivable, net		4,856		5,753
Prepaid expenses		357		313
Other current assets		121		108
Total current assets		6,429		7,886
Noncurrent assets:
Property and equipment, net		5,060		5,246
Indefinite lived intangibles		34,720		34,720
Goodwill		4,338		4,338
Operating lease right-of-use assets		—		2,354
Other assets		25		25
Total noncurrent assets		44,143		46,683
Total assets	$	50,572	$	54,569
Current liabilities:
Accounts payable and accrued expenses	$	291	$	411
Accrued salaries and commissions		651		643
Deferred revenue		591		513
Income taxes payable		18		18
Operating lease liabilities		—		516
Other current liabilities		23		80
Total current liabilities		1,574		2,181
Noncurrent liabilities:
Operating lease liabilities, net of current		—		2,137
Other noncurrent liabilities		332		2
Total noncurrent liabilities		332		2,139
Total liabilities	$	1,906	$	4,320
Equity:
Noncontrolling interests	$	47,146	$	47,880

WQHT-FM and WBLS-FM

Results of Operations of Disposal Groups

The following table summarizes certain operating results of the Stations for all periods presented. In accordance with ASC 205-20-45-6, Emmis has allocated interest on the debt required to be repaid as a result of this disposal transaction to the results of the Stations.

	For the Three Months Ended August 31,				For the Six Months Ended August 31,
	2018		2019		2018		2019
Net revenues	$	14,196	$	16,314	$	23,511	$	26,152
Station operating expenses, excluding depreciation and amortization		11,197		11,585		16,902		18,166
Depreciation and amortization		292		94		584		417
Interest expense		91		55		179		167
Income before taxes	$	2,616	$	4,580	$	5,846	$	7,402

Schedule of Major Classes of Assets, Liabilities

Major classes of assets and liabilities of the Stations that are classified as held for sale in the accompanying condensed consolidated balance sheets are as follows:

	As of February 28, 2019		As of August 31, 2019
Current assets:
Prepaid expenses	$	100	$	—
Other current assets		100		—
Total current assets		200		—
Noncurrent assets:
Property and equipment, net		2,356		2,102
Indefinite lived intangibles		63,265		63,265
Other intangibles, net		758		661
Operating lease right-of-use assets		—		11,817
Other assets		145		343
Total noncurrent assets		66,524		78,188
Total assets	$	66,724	$	78,188
Current liabilities:
Operating lease liabilities	$	—	$	2,302
Other current liabilities		498		26
Total current liabilities		498		2,328
Noncurrent liabilities:
Operating lease liabilities, net of current		—		11,466
Other noncurrent liabilities		1,778		78
Total noncurrent liabilities		1,778		11,544
Total liabilities	$	2,276	$	13,872